Five Questions with Nicole Witt
- 1. Why do adoptions cost so much?
The simple answer is that many of the elements that go into a safe and successful adoption are expensive. And they're the type of elements that pre-adoptive parents (PAPs) want to make sure are happening legally and properly. It's important for PAPs to understand that what they're paying for are the services involved in the adoption process.
First, adoption agencies and attorneys need to advertise to find prospective birth mothers (PBMs) to match with their PAPs. Advertising costs can quickly add up.
Next, the PBMs should go through counseling to ensure that adoption is truly the right choice for them -- PAPs certainly want to make sure that the PBM is properly informed and is committed to her plan. One of the many potential negative consequences of not offering counseling is that the PBM changes her mind at the last minute. So, although counseling can be expensive, it's less expensive than the money one could lose if an adoption disrupts at the last moment.
Another item that can prevent a last-minute disruption is a birth father search which is handled by the PAP's adoption agency or attorney. This could be as minimal as placing some newspaper ads or as comprehensive as hiring a private detective to try to find the birth father, or perhaps several potential birth fathers.
One of the largest elements of the cost is the PBM's expenses. At first, many PAPs scoff at the idea of paying the PBM's expenses. However, when they think of it as their opportunity to impact their child's prenatal environment, they often realize the benefits. Of course they want their child to eat well and to sleep in a warm, dry place. Often, the only way that is going to happen is by paying some of the PBM's expenses.
And, finally, to round things out there are attorney fees, court reporting fees, court filing costs, and more. Add to that the costs of travel and Interstate Compact processing for out-of-state placements, and the complete cost of adoption can be quite high.
- In general, what is included in agency fees?
The "agency fee" makes it very complicated to compare agencies directly as one's "agency fee" may cover different elements than another's. The same holds for attorney fees. Most agency fees will cover basic business expenses such as advertising and overhead, but from there it varies broadly. For instance, one agency's fee may include PBM counseling, home study development, Interstate Compact processing and legal finalization fees whereas another agency may count these as separate items that are paid to third parties.
- What, if any, are the cost benefits of using an agency over an attorney or vice versa?
Because each agency and attorney has its own cost structure and fee schedule, it's very difficult to compare across the categories. Additionally, depending on local state law, attorneys can provide different services. Perhaps a better way to consider this question is to discuss the different financial arrangements that are offered:
Adoption agencies will either have an agency fee plus PBM expenses or one total flat fee. Sometimes the flat fee is even "guaranteed" in case of a disruption. Although a flat fee may be appealing at first, this type of arrangement usually involves a relatively high fee and requires a significant percentage of that fee to be paid upfront. This limits the PAPs options regarding also signing up with other agencies and attorneys to expedite their wait time. A more common arrangement is an agency fee plus PBM expenses. In these cases, if the PBM chooses to parent the baby, the expenses paid out are lost, but the agency fee is either rolled over to the next match or is refunded. Although the rollover option is much more common, having the money refunded is preferable because, again, it allows the PAPs to continue pursuing alternate opportunities both with other agencies as well as with the agency through which the original match failed.
Adoption attorneys (as opposed to agencies) rarely offer a flat fee. Almost always, PBM expenses will be separate so that the attorney him/herself is not bearing the risk of these costs. The rest of the fees will either be charged on an hourly basis or grouped together under one "legal fee." It is impossible to know ahead of time if a particular PBM match will require many legal hours or not. For instance, a key yet uncontrollable factor is how early in the pregnancy the PBM connects with the attorney. Therefore, it's better for PAPs to base their decision on the attorney's qualifications and "fit" with their needs, rather than trying to guess which path will be least costly. One caveat -- be careful when comparing one attorney's hourly fees to another. Although one may be lower, that attorney may have less adoption experience, thereby taking longer to complete tasks, which could lead to the total cost ultimately being higher. Additionally, the "more expensive" attorney may have his/her paralegal complete much of the work with the actual attorney's hourly fee being charged infrequently.
- What are some costs that most people overlook in the adoption process?
Many PAP's look at agency fees or even total agency costs when trying to budget for their adoption. However, there are many costs that fall outside of the agency's purview. Elements such as the home study, post-placement visits, Interstate Compact processing, travel and finalization can add thousands of dollars to the total, so it's important to account for all costs upfront. Be sure to also factor in some savings that you may realize, such as discounted agency and attorney fees that have been negotiated by your adoption consultant, should you choose to use one.
- In general, do PAPs have any recourse if an adoption falls through?
Assuming that there were no legal irregularities, no fraud or anything of the sort - if it was just an honest PBM changing her mind BEFORE signing the consent forms, then the PAPs rarely have any recourse. Depending on the state(s) involved and the contract the PBM signed with the placing entity, the birth mother may technically be required to repay any funds that she's received for her pregnancy-related expenses. However, in most cases the PBM is simply unable to do so. By having such an agreement in writing, the PAPs are able to write off the expenses as bad debt on their taxes. Beyond the PBM expenses, most agencies and attorneys will 'roll over' any additional money the PAPs have spent to the next match, with the possible reduction of some legal fees to compensate the attorney for time actually spent on the case that fell through. Although more rare, some agencies/attorneys will refund all the unspent funds to the PAPs, thereby allowing them to search for a new match via additional sources.
